Algorand To Change The DeFi Industry• February 1, 2022 8:58 pm • Comments
One of the less known blockchains today that is focused on transforming the decentralized finance industry is the Algorand blockchain.
The blockchain is founded by the Singapore-based Algorand Foundation where it founded in order to continue the support of the development of the blockchain and the native token that it runs on called Algo.
Currently, Algo is ranked 25 on CoinMarketCap when measured by total market cap and is currently valued at a total of $6 billion and has a total supply of 10 billion coins although not all of the supply is within circulation.
— Michel_Crypto #XDC #iso20022 (@MichelCrypto1) January 30, 2022
Algorand blockchain is designed to help developers create applications based on the Algo coin, which has a price of approximately 95 cents as of Jan 27.
Year-to-date, the crypto is down a little more than 44%. At some point during September 2021, Algorand was trading near $2.38.
It followed the general cryptocurrency market collapse during late 2021 and early 2022, which is unsurprising.
There is a strong correlation between coins and sour investing moods or a loss of momentum for risky assets.
The team behind this project is also very public regarding their profiles and their past history or experience.
Algorand’s founder is Silvio Micali who is a professor in computer science at the Massachusetts Institute of Technology who had received multiple rewards for his work in blockchain protocol and the theoretical science behind it.
The blockchain also seems to have multiple benefits that could separate it from the other plays in the decentralize finance space making it have future potential for growth.
One of the advantages is the speed of the network where it is able to perform transactions within 4 seconds on average.
Additionally, the system is built to easily scale as it currently does not have restrictions on how many transactions it can handle which should help with future congestion issues.
Lastly, the blockchain is powered by a proof of stake model which makes it secure compared to other competitors that do not have a pure PoS model and is very cheap to conduct transactions.
The platform has smart contract capabilities, but its technology is aimed mainly at financial services and decentralized finance (DeFi) applications.
For example, the Algorand Foundation “announced the 150M Algo Viridis Fund to support and incentivize the creation of the world’s most efficient, scalable, and micro-fee DeFi ecosystem.”
This is very important news and a strong step toward ALGO becoming a key player in the DeFi sector.
Some interesting applications of Algorand include yield farming, DeFi lending, non-fungible token (NFT) marketplaces and synthetic assets.
Its foundation has created a $200 million liquidity fund for its DeFi ecosystem, which will be especially helpful in its early stages.
Algo is currently available on major exchanges like Coinbase, Binance, and Kraken.
The blockchain certainly does have some potential to change the DeFi sector and is expected to have increasing bullish investor sentiment heading in the end of 2022 as it continues to get upgraded features in the hopes of achieving wider mainstream adoption.
— nȺtive (@LivingInBahstin) January 28, 2022
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.